Professional Documents
Culture Documents
Activity dependent on the funding source eg TZZ or RZZ for Core, RBZ for SFC,
RGA for a Research Council etc
Authorisation levels
These will normally be consistent with levels for Revenue expenditure. However, in
the case of Institutional Capital Projects higher authorisation levels have been set for
Estates staff on the basis that budgets for these projects have previously been
approved by the Operating Board (previously JPFEC).
Deferred Capital Grants
These are sources of external funding used towards the meeting the cost of a capital
project. As well as SFC Capital grants these can include Fundraising (normally
channelled via the Development Trust), and Grants from bodies such as the NHS and
Research Councils.
The coding structure for DCGs is:
Nominal
Budgetholder
HAAA SFC Buildings
15UGA
HBAA Non FC Buildings
15UGA
HAAB SFC Equipment
15UGB
HBAB Non FC Equipment
15UGB
The Activity code will normally be comparable to the expenditure code for a similar
funding source eg RBZ for SFC, RGA for a Research Council, RGB for Development
Trust etc
Contributions to Capital Expenditure from College Revenue budgets
When a College is funding a contribution to a Capital project the simplest method of
actioning this from a Management Accounting point of view is to input a journal entry
debiting a College code and crediting the Capital project code. The merits of this are
that
the journal would provide an audit trail of the College contribution
the I&E bottom line budgeted surplus would not change
However, the above is not proper Financial Accounting practice terms because:
the Universitys fixed assets will be understated
in the year that the journal is processed the Universitys I&E surplus will
also be understated
To satisfy both the Management and Financial Accounting requirements it is therefore
proposed that when a College contribution is approved
the Colleges revenue budget for that year will be decreased and the
capital project budget increased by the amount of the contribution
a compensating budget will be set-up in Financial Adjustments in code
4300 MC000 UZZ0000. When preparing the out-turn forecast for
Financial Adjustments it will be assumed that there will be nil
expenditure against this budget. We will therefore satisfy the dual aim of
not changing the I&E budgeted surplus while at the same time reflecting
reduced revenue expenditure in the out-turn forecast
Capital Expenditure funded from Discretionary and Principals Dowry Reserves
1. Funded from reserve draw-downs additional to those included in that financial
years revenue budgets:
a) the normal activity code will apply eg expenditure funded from
Zoology Discretionary reserves should be charged to ROQ0061.
b) balance sheet nominal and budgetholder codes should also be used.
These will vary depending on whether the expenditure is Buildings
(AA** 00UES) or Equipment (AB** 02U** eg 02UZY for Zoology).
2. Funded from reserve draw-downs already included in that financial years
revenue budgets:
As in (1) but with a compensating budget addition to 4300 MC000 UZZ0000
At the year-end the relevant reserve balance should be reduced to take reflect this
expenditure.
Capital Expenditure funded from Core Revenue budget underspends rolled
forward from a previous financial year
A capital project budget should be established and the Depreciation budget should be
uplifted to include related Depreciation charges.